SECTION 370(1A)

LOANS TO A FIRM IN WHICH A PARTNER IS A BODY CORPORATE

UNDER THE SAME MANAGEMENT

1. Subject - Loans to a firm in which a partner is a body corporate

under the same management.

2. Passing Authority - General Meeting.

3. Nature of the Resolution - Special Resolution.

4. Specimen Resolution(s)

"That pursuant to the provisions of Section 370 of the Companies Act, 1956 approval be and is hereby given to the making of loans from time to time on such terms and conditions as the Board of Directors of the Company may think fit to Bengal Mills Agencies; provided always that the aggregate of loans outstanding made by the Company shall not at any time exceed Rupees Thirty lakhs."

5. Guidelines:

1) Resolution is requirked not only for making of loan about also for giving guarantee or providing security in connection with a loan made by any other person to or to any other person by the firm.

2) It is usual to pass a resolution for contributing towards partnership capital also.

6. Filing: Form 23--within 30 days.